- Ethereum has been showing tremendous signs of strength as it begins moving in lockstep with Bitcoin
- Despite seeing a selloff on the first day that Bitcoin started rallying, ETH quickly reshaped its previously close correlation with BTC and began surging
- This surge led its price all the way up to highs of $420 yesterday, which is where it found some slight resistance
- One analyst believes that this resistance will be swiftly surmounted in the near-term
- He notes that it may dip towards a liquidity and untested support level first and then rally past $430
Bitcoin, Ethereum, and the aggregated cryptocurrency market have seen some intense bullish price action throughout the past few days.
Initially, when Bitcoin began its ascent after breaking above $12,000, some investors feared that BTC would enter a phase in which it rallies and leaves altcoins behind.
Although this trend lasted for a day, the next day, Ethereum and other major altcoins were able to reform their correlation with the benchmark cryptocurrency and explode higher.
Many altcoins are now trending upwards, with ETH acting as a guide for these tokens.
One analyst states that Ethereum may sip slightly lower in the near-term to test its near-term liquidity and support. He contends that this will spark a sharp rebound that sends it up past $430.
Ethereum Consolidates Alongside Bitcoin as Momentum Stalls
At the time of writing, Ethereum is trading up marginally at its current price of $418. This is around where it has been trading throughout the past 24 hours, being unable to break above $420.
If this level is surmounted, it will likely mark the next phase of the ongoing bull trend.
Another firm rejection here, however, could prove to be somewhat grave, signaling that a retrace is imminent in the near-term.
Analyst Claims a Move to Key Support Could Lead ETH to Rocket Higher
He notes that a defense of this level could easily spark a move past $430 – a target seen while looking towards the below chart.
“Liquidity + untested support, please give fill.”
Image Courtesy of Chase_NL. Source: ETHUSD on TradingView.
How Ethereum trends in the coming few days will provide some serious insights into its mid-term outlook.
Featured image from Unsplash. Charts from TradingView.